Comments:

Failure to regulate conflicts of interest and unrealistic valuations of mortgage tranches led to this crisis, along with the basic economic policies of Reagan. This is a failure of capitalism to work in the absence of regulation. Captialism has its strengths, but keeping people honest is not one of them. For that, there must be regulation. Past regulation does not necessitate more regulation. Past regulation was ineffective and did not address what was actually going on. Our financial system was not socialist until capitalists started to lose their bets. Then they call mama government to rescue them and keep them rich.